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On 30 November 2007 the Board of Directors of RAO UES of Russia approved conditions of IDGC of Centre's formation.
RAO UES of Russia's Board of Directors approved additional issue of 42,118,200,000 ordinary shares of IDGC of Centre, and also ratios of conversion of DGC's shares into IDGC of Centre's supplement shares.
According to the resolution of the Board of Directors into one ordinary share of IDGC of Centre are converted:
• 78000/738687280 of Belgorodenergo's ordinary share with a par value of 3800 roubles;
• 78000/676489811 of Belgorodenrgo's preferred A-type share with a par value of 3800 roubles;
• 78000/18572663 of Bryanskenergo's ordinary sharewith a par value of 10 roubles;
• 78000/17008845 of Bryanskenergo's preferred share with a par value of 10 roubles;
• 78000/7453771 of Voronezhenergo's ordinary share with a par value of 10 roubles;
• 78000/6826164 of Voronezhenergo's preferred A-type share with a par value of 10 roubles;
• 78000/327431 of Kostromaenergo's ordinary share with a par value of 0,25 roubles;
• 78000/299862 of Kostromaenergo's preferred A-type share with a par value 0,25 roubles;
• 78000/212429 of Kurskenergo's ordinary share with a par value of 1 rouble;
• 78000/194542 of Kurskenergo's preferred A-type share with a par value of 1 rouble;
• 78000/1798460 of Lipetskenergo's ordinary share with a par value of 1 rouble;
• 78000/542455 of Orelenergo's ordinary share with a par value of 3 roubles and 50 kopecks;
• 78000/496780 of Orelenrgo's preferred A-type share with a par value of 3,5 roubles;
• 78000/918754 of Smolenskenergo's ordinary share with a par value of 1 rouble.
• 78000/841395 of Smolenskenergo's preferred A-type share with a par value of 1 rouble;
• 78000/73076 of Tambovenergo's ordinary share with a par value of 1 rouble.
• 78000/66923 of Tambovenergo's preferred A-type share with a par value of 1 rouble;
• 78000/371625 of Twerenergo's ordinary share with a par value of 1 rouble.
• 78000/340334 of Twerenergo's preferred A-type share with a par value of 1 rouble;
• 78000/13948314 of Yarenergo's ordinary share with a par value of 50 roubles;
• 78000/12773866 of Yarenergo's preferred A-type share with a par value of 50 roubles.
The Board of Directors also recognised as expedient, in case the Meetings of DGC's Shareholders will not pass the resolution on joining to IDGC of Centre, to place IDGC of Centre's supplement shares by means of private offering. IDGC of Centre's additionally issued shares will be paid by belonging to RAO UES of Russia shares of those DGC of IDGC of Centre's configuration that did not approve the resolution on reorganisation.
Considering the above, RAO UES of Russia approved parameters of additional issue of IDGC of Centre's securities placed in case of non-acceptance by the General Meeting of Shareholders of any DGC's resolutions on reorganisation in the form of joining to the company. In this case the amount of IDGC's additional issue will equal 21,106,473,495 ordinary shares.
Parameters and volumes of IDGC of Centre's additional issues, and also conversion and exchange ratios (in case of additional issue) were calculated proceeding from uniform principles, on the basis of estimation of market cost of shares of the companies participating in reorganisation that was executed by a consortium of estimation companies including Ernst and Young, NP Consult, International Valuation Center.
RAO UES of Russia's Board of Directors approved termination of RAO UES of Russia's participation in DGC of IDGC of Centre's configuration, and also change of participation stake in IDGC of Centre in case of DGC's joining or establishment of the holding company on the basis of IDGC of Centre.
The Board of Directors charged RAO UES of Russia's representatives in management bodies of IDGC of Centre and its DGC to vote in favour of all necessary resolutions directed at completion of IDGC of Centre's formation.
It is planned that IDGC of Centre's formation will be completed in the second quarter of 2008.
Resolutions of management bodies of IDGC of Centre, Volga IDGC, Urals IDGC, North Caucasus IDGC, and South IDGC and DGC included in them connected with formation of IDGC's new configuration will be passed after enforcement of the corresponding Order of the RF Government.
According to the results of the end of the inter-regional companies' target structure formation, RAO UES of Russia's stake in the authorised capital of IDGC of Centre, Volga IDGC, Urals IDGC, North Caucasus IDGC, and South IDGC will equal not less than 50 % + 1 share voted.